Metropolis Healthcare acquires Core Diagnostics to lead in cancer testing

Metropolis Healthcare Limited, a leading name in India’s pathology sector, has announced the acquisition of Core Diagnostics, marking a transformative step towards becoming the nation’s leader in advanced cancer diagnostics. The Mumbai-based diagnostic giant will take full ownership of Core Diagnostics, a Delhi NCR-headquartered company specializing in cancer testing, through a cash and equity deal valued at INR 246.8 crores. This strategic acquisition underscores Metropolis Healthcare’s ambition to deepen its foothold in Northern and Eastern India, while significantly expanding its presence in the specialized oncology testing market.

The deal involves a 55% cash payment and a 45% equity swap, pending shareholder approval, and is expected to close within 60 days. Core Diagnostics, established in 2012, operates in over 200 cities, boasting NABL and CAP-accredited facilities, including a state-of-the-art laboratory in Gurugram and several satellite labs. Its expertise encompasses over 1,300 high-end diagnostic tests, catering primarily to oncology needs and serving more than 6,000 healthcare specialists, including a strong base of top oncologists.

Ameera Shah, promoter and executive chairperson of Metropolis Healthcare, highlighted the significance of this acquisition. She noted that India’s oncology sector, driven by technological advances and increasing healthcare accessibility, is growing at a compound annual growth rate (CAGR) of 17.5% and presents immense potential. Shah emphasised that the addition of Core Diagnostics’ capabilities will help Metropolis address the critical need for advanced cancer diagnostics, given the country’s rising cancer incidence of 1.4 million new cases annually. The integration will also support the creation of a Centre of Excellence in Cancer Diagnostics.

Metropolis CEO Surendran Chemmenkotil remarked that Core Diagnostics’ robust operations in Northern and Eastern India align seamlessly with Metropolis’ strategy to strengthen its network in underserved regions. Chemmenkotil also noted the potential for cross-selling opportunities, where Metropolis’ broader test portfolio can complement Core’s specialized oncology offerings.

The acquisition reflects Metropolis Healthcare’s commitment to strategic growth, as echoed by its chief business development officer, Avadhut Joshi. He stated that integrating Core Diagnostics would unlock cost and revenue synergies, leveraging Metropolis’ extensive distribution network and operational expertise.

Core Diagnostics CEO Dinesh Chauhan described the acquisition as a new chapter that will enable Core Diagnostics to expand its reach and impact under the umbrella of Metropolis Healthcare. The move follows a series of successful acquisitions by Metropolis, which has solidified its position as a market leader.

Industry analysts suggest that this acquisition positions Metropolis Healthcare to address gaps in advanced cancer diagnostics across India while capitalising on a burgeoning oncology market. By uniting Core’s high-tech offerings with Metropolis’ extensive network, the companies aim to provide comprehensive and accessible diagnostic solutions to a wider demographic.